The Maharatna Status was first introduced in 2010. It was introduced for the Central Public Sector Enterprises (CPSE). The main aim of the scheme is to help the CPSEs expand their operations globally. Also, it aims to provide powers to the boards of the CPSEs to help them emerge as global giants.
Maharatna in India
The following have been identified as Maharatna in the country as of 2021:
- Bharat Petroleum Corporation Limited
- Bharat Heavy Electricals Limited
- Coal India Limited
- Steel Authority of India
- Oil and Natural Gas Corporation
- Indian Oil Corporation
- Hindustan Petroleum Corporation Limited
- Power Grid Corporation of India Limited
- Power Finance Corporation
The following are the eligibility criteria to be considered to grant the Maharatna status:
- The entity should have Navratna status
- It should have been listed in Indian Stock Exchange
- It should have an annual turnover of more than Rs 20,000 crores
- It should have annual net worth of more than Rs 10,000 crores
- The annual profit of the entity should be more than Rs 2,500 crores
- It should have significant international operations
Powers of Maharatna boards
The Maharatna boards have been delegated with the following powers:
- The boards shall incur capital expenditure on purchasing new items without any monetary ceilings
- It shall make equity investment to establish wholly owned subsidiaries.
- It shall undertake mergers in India and in abroad. However, such mergers are sealed to 15% of the net worth of the CPSE.
- It shall create below level boards up to E-9 levels. The Board of Directors have all powers to appoint, re-designate the below level board members
- The board shall structure and implement schemes related to human resource management
- It shall obtain technology by purchase
- It shall enter strategic alliances and technology Joint Ventures
- The board has powers to effect organizational restructuring. This includes opening of offices in India and abroad, establishing profit centres, etc.
- The Board of Directors should inform the Cabinet Committee on Economic Affairs (CCEA) about its decisions
- The CMD of the Board has powers to approve international tours of functional directors
The performance review of the Maharatna is done by the Inter-Ministerial Committee. The committee is usually headed by the Cabinet Secretary. This committee will recommend the divestment or continuation of Maharatna status.